Stipulated Order for Permanent Injunction and Civil ... · Case 1:14-cv-29603 Document 33 Filed...

Case 1:14-cv-29603 Document 33 Filed 09/09/15 of 16 PageID #: 160

UNil'ED STATES DISTRICT COURT FO.R THE. SOlJTHERN U.tSTRICT OF WEST.

llLUEFIELU• UIVlSION

FEDERALTRADE COMMISSION,

Pl~intfff.

v,

RAMEY.MOTORS, IN'C.:> a West Vit~inia corporation,

STIP{Jl,ATE:Q ORDER

ENTERE GINL~

SEP -· g 2015

TERESA l. DEPPNER CLERK U.S. District Cou'rt

S~thern District of West Virginia

FOR PER~NENTINJUNCTJQ'N,,AND CIVIl. PENALTY JUDGMENT

.I?Ie(iatrff~ the Federal Tradl;1 Contmission C"FTCi% ,gr the: "'Cctromis'SJott''), has

commenced this acti~11 b~ filinf$. a Complaint: for {)ivil' pe.r'f~llties Md injunctive and other :reUef,

pursuant to Sections .S(l) and 16(a) or the F~fiera:l Trade Commission .Act ("'FTC AotJ~),

U .. S.C. ~§ 4t5.,f) and· 56( a), as amended+ qnd the Truth In I.etlding Act r~t!LA~~}i lS U.S. C. §§

1601 ~i,ocfTT~ a$ amended, and its impi~in~nting Regulation Z1 12 C.F.R .§ 226~ as arn~nded,

Pt;fendMt, ~sdefined below, mas waiy.ed,setvice ofth~summ<;ms an<Mhe Complail;Lt, The

lJt!.tt,ie~4, represented by the counsel iO.ent:tt'ied below, have agreed to thjs settl¢:mert~ Qfthe

action wit1Jout ;.acUudication of arty issue of fact or law,

THEREFO~ it is ORDERED ~s folkrws:

FINDINGS

L This Court has jhrisdiction. :over this matter.


Th~·Cctt!lpla~nt qharge,sthat '[)efendant violated the.FTC Dec:Lsitm and ·Order in FTC

Do4:Sket No. C-¥+354 C'F!C 'fJrder''), a copy of which is attached hereto as Exhibit A

and made part of thfs. Order"

:3 . Def€ndaut neither admit~;;n:ot denies any of the. allegatiofiEv1rt the Gc.tmplainJ;~ except as

facts neces~ary to estab.llshjtu~isdiction.

~ llJefen&nt waht~s ant c1aim it may hold. t!t1:cl~'fb:e 1,Equ~l A~b~$ 'tt> Justjce Act,

2tl :Q,S.C; .§ 2~12, tto11cemi11g the ptos~cution of this acti()n through the date. of tlli~

Order> and agrees to bearlts. own. co~sts and attop1ey$~· fees,

Plaintiff af:ll{iD~llm~~t waive all rights to:ap:Pe.aD··t:!t otbeMfs~ ~challenge or contest ' ' ' // / ' ,, ,,

})El!'INITI()NS,.

CIVIL PENALTY JUl).G~E~T

ITJs··HEREBY ORtlERED that

A. Jn4~m~nt in the amount uf EL(rlrtY THOUSAND DQLLARS ($80,000}:is

hetel§}' ·entered. in favor of Plaintfff ~~:ainstl)~t~ndt!ttt as.a;c~vil pemilty pursuant

thclJnited States, ElO:HTY!HOUSAND DOLLARS ($80,000.00), which, as

2


.Defendant stipulat~s,its u:ndersignea counsel holds in escrow ;for no purpose

other than payment to Pl~intlff. Such payment must he"made :within 7 days of

entry o;f this Order by olect~onic fun¥i transfer in accordance. with instructions

previously provided by £vrepresentative of Plaintiff.

C. ci)ef~tidant,relinquishes dtJminion and all legal and equitab1¢ ri,~t, title~ and interest;

in all assets transferred pursuant to· this. Order and may .n<Jt se.ek the tet1Jr'J;r of any

JI>. Thefa.ots alleged in the OomplaintwtU betaken as true, with0Utftll(f}1er proof:

including in any subsequent civHJitigationby ox ;Gti be!lalfofthe Commiss.kin i·n a '

pt~~eedhl;grtG ~nforce:its,:d!s,~ts to any."~~m~tlt or monetary j.udgment;pursuantto

fhis:Order.

H. PRQ~IBlTIONAGAINSTVlOLATING;,FTC ORDER

·e:tnpl.oye~~ and attorneys, and an •_p.er$ons in a~~hrec¢oncert 01' participati\DtJ. with t.iny of theln who

receiv€t $lc>ttud notice of thi$ Ot4l(;)t ~Y personal service or otherwise£ ;fl:te ber'¢'bY penl1ane:ntt~

e~j oitted from violating. dir¢¢tly, or through any corporation, subsidi::u')!. d~vi.sion. or other

i:levice;.ru1y provision ofthe FTC Order, .a copy of which is attached hel'ct<J as E%:hibit A arid

made,part of this Order.

ITlS FlJRTHER ORDERED that Defendantobtain acknowledgpjents ~£receipt of this

Order and l:Zxhihit A~

A, Defer1dant, within seven (7) days of entry '.vf Utis Ot;d.er, must submit to the

3


Commission an ;aciknowle4g~n~nt of:rece~pt oftb,is Or~es:, in61Qdipf:s)&;<l'xibit A,

sworn under penalty ofperjiJry.

13: Ftrr twenty (20) years after entty of this Otd:et, DefendanJ mu~t 4¢ftV~r a:v.opy

ofJthis 'Order) including EXil:iibit A, to: (l} all principals~ offi~er$:, direct(;)ts,

atict tle~le:rship managers~ {$!)"all employ~~s, agents, and teJ?r~seutatives who

partf~ipate in conduct rel:E~,ted ;to the suoject maUe:t of thi~ Ord.er, ~n~lu4ing

advertising1 financing, 1~asin)i~:, and sale~; and (31 any ,fretsin~~$ e4itity

resulting from any chaP~~ .in structt+r~ tts set forth: >.in, :the titf.e4

Compliance Rep,p'·¢in1J!;. Fbt curte.nt~e:tst>tro.elr·d~;)v~11musto(t;cUr within 7

<:1~· 9nto/; ibis Order, To aU others~ delivery must occur before .the~

a'ssum.e their respon~i~£1ttie's.

c. From each ine(h;idutl or entity to w,b:iqh Def~n~<rkl;~. ~~li:vered .a, t;:opy of this.

;~,r~~Ti ~nclud:ing Exhibit .A, D¢fendant must obtain, within thirty ($rt} 4tl~s •. a

signed and dated acin'PW:lt.ldgment .c>(re~eij!i~ of this Ot:d~r* tb:clu6ing E:&hiblt A.

Commission:

fheh: !1a:I:l:1CS;- tel~J;ifi'op.~ p.umbers~ an(i\ phystc~;~J, pt:!~tl}, eltiait; tmdJnternet 4


and

involvement of any other btJsiness; (d) describe in detail whether and how

Defendant is in comp1ia:rtoe with each Part of this Order; and (e) provfde a copy

of each acknowledgment of:this Order, including Exhibit A1 obtained pursuant to

this Order} unless p:r:e'\ti<Yu$1}1 submitted to t!he Commission.

For (20) afthhr

cmnpliance

acy cht:tnge irtr

penalty

designated pob1:t ofcQntact

Defendant or any entity tha:tDefendant has any ownership interest in or dire~tly

:ot mdir.¢J3:~ljt CQ1)ltr{}Js that may affect c«);tU;pliattee()blfgati()ns arisjtig tu:tiJer this

or

to CQ.ttlmission notiee

bankruptcy petition, insolvency .PrOCeeding,. or anY proceeding by Or

against Defendant within :fqut1;een(14) days of ilts<fUing.

D. Any submission to the Con1.mtssion by this to be sworn under

1

laws

Executed

perju.ry · nmst be tme

America that the foregoing is and corre;ct

·-·--""'and supplying the full name, title (if

5


applicable), and signature.

E. Unless otherwise directed by :a Cm.nmission representative 1n wl'iting, an

submissions to the Commission purs1..1ant to this Order tnttst he emailed to.

'DEbrief'@ftc.gov or sent by overnight courier;(not thetiS. Postal Service}to:

Associate Director for Enforcement,, Bureat1 ofCmtstltner:Prbtection, Federal ' . . .

tra,de Commission? 600 Pennsyl;'lT~a A venue~. <NW; W!)~liili1{5ton, DC 20580. The

sulzjcct line must begin: FTC v, Ramey Motors~ Inc., No. Xl £0,0:2:5'.

V. RECORD~Il,PlNG

IT IS FURTHER OKQBRED tliat Defend!int mUst l?r,~~te certain records for twenty

(20) y~atli/aft~r ~rttrY oftbis Order. and retain; ea;ch such record for five {~) y~arSi,

S~ecifically~ Defendant must m:ail:ltiiti thFl fqllowing ,recortis:

A. AceountinQ r~cot·ds showing the, i!te:"vennes froni all goods or services sold, .. afl

B; Personnel rl;1<;ords showing, for each person providing services related to 'the

subjecl m&ttel~ o"f'tbis Order, inclu<:ling. adv~rti$ing, financing, leasing, and sales7

.reason for termination~

C. Com])laints and refund requests; related to the subject matter of this Order,

6


including advertr~iug, financing, leasing~ and sales, whether received directly

or indirectly, such ~s through a third party, and any response;

.D. Agreements to purcha";e! installation and upgrade records~ ma1ntenance records,

and operating manuals fo:r·:afl dealer management software and aU other systems

used for finance and ltr:d'Se department operations;

Records sufficient toJdentify an (I) intenJal personnel Mel, I:)Xtellial p~rsons and

entities involved i:ru:lav~rtisement creation; review, and p~bU<;~ti6n, (2) lenders

of consumer cJ;edit<d.o{ug business with .Defendant, Zi.l\vl '43) lessors of consum!llr

lea,sesAioingbusiness with Defe~dant;

P, li{ach ad:vertisement~md other prorngtio.nal material containing tJny

representation c:overed by this Qrder;

referenced in Part~· F above· . . . ' ~ . .,

t't~' r~pr~sentation referenced ,fn Part V~ 1~' ~1J<)1?W? 'f,?;r.tM basts relied upon :tbr

;he represenJatiQn, inclugillg complaints an;d 6ther Mmrnunications with

oon~um~:rs or with govermnental or consurt'ler ;prl;:!tectkm organizations; and

this Order, including all sub~nl$'sion:s to the Commission.

7


VI. COMPLIANCE MONITORING

A. Within fourteen 04) days of receipt of a WJ:itte~ ,;:eqnest from ~,Jiepresenta!ive.

of the Commiss.ion; J)cfendant must: submit ·additional cbt!YP.limee reports nr . ... . .

Comn:;dssron

and

.69 ..

~he: Commission is authorized

· representativt;s:

affiliated Defendant who ··has agreed. to The ~rson

Defendant or tl11Y indivic.Jual or ~:filiated. with Defendmt, without the

necessity this the

20 ofthe Act, 1 §§ 57b-L

8


VU. 'RETENTION ()F ,JIJRISDICTION

IT IS·FtJltl'HER ORDERED that .this Court retains jtJ;t.istliction of this matter

for purposes ofconstruction~ modification~ and enforc4}ment ohhis Order.

SO ORDERED this CJ. r&. 9ay of SEPrEM8£ R • 2015

UNITED STATES DIS'fRICT GOURT JUDGE

9


STIPULATltD A.NllA.GU!ll :}'0:

FOR THE {;OMMI&SION'l .lAME{S J\. ~OHM . , .. Assoo1nt~. Dtrector fot Et\f<Jr®m~nt

IO


FTC v. Ramey Motors~ Inc. Stip.ulated Order


UNI.TED STATES AMERICA FEDERAL TRADE COMMISSION

COMMISSIONERS:

ln. th.e Matter qf

RAM£1' MOT()(($, l~C., ~ t~rporatiun.

Jon. Leibowitz, ·Chairman J., Thmuas RO$Cll Edith Ramirez Julie Brill Maureen K. Oblbaus:en

DOCKET NO. C"'J4354

DECISION AND ORDER

11~3207

Federal Trade Commiss.io}l ha:vinginitiated an investiganQ!l ofcertam acts and practices of Respondent n~m~d in the caption ltereof~.and Respotfdenlhaviug been furnished thereafter with a c.oJ?Y''O.fa draft complaint which the Btiteau<of Consumer Protection prop.tised to ;pr.csen:t to the Commission for its consideratit;~n and which~ if issued by the C\'Jm:rnission, wl:rutd,dharg:e Respondent with violation ofthe Fe.deral Trade CommissiC!tl Act {'"f1'?C Act") and the Ttuth . Lending Act e'TILA'~)~ and

Respondent, its attorney, and counsel fm thlll t;.Jomttl1ssaon thereafter ,.,~~.,,vu'"'"· agreement:contail;ting:a c()nsent order an admission Respo.fldtnt of all lib'tjurisliictional fa~sc;set a statement fue st:gr~tng

not constitUte an admi$1do,u by the law been viQlated alleged in, such tompJaint, ur

AUMJ§"'"in complaint, othertl'loojm;i~ictional facts, waivers and provisim1s as required by the C.om'Jlfissim{'s and

Commission h~ving th:.ereafter considered the matter andhavin:g determined that it had reason to believe tl1atRespo;ndent has violated the JTCAct andthe TILA, and that a complaint should issue stating its charges in that respect7 ·and ba~g thereupon accepted the executed consent agreement and placed such consent agreement: on the public record for a period of thirty (30) days for the receipt and c.onsideration af'pubUc comntent'S,.now in further confom1ity with the procedure pt:est~rlbed 2.34 oflts R.ulesj the Commission hereby

the foltow1ngjur1sdictiona1 findings, and entersfuefollowing order:

Kc:spono\mt, Ramey Motors, is,a West Virginia corporatienl 460 East, Princeton, WV1

FTCv, Ranrey Motors, Inc, Stipulatt:d Order ~Exhibit A,. .Page lofS


ORDE:R

DEFINITIONS

matter of

1, "Advertisernen:tn j:;hall mea11 a commerc.ial message in any medium thatdire~tly or indirectly promotes a 'Consumer transaction,

2, "Cl~arltruid ¢o1Jspic:U(}u$1i\ shall mean as ft:JtloW$:

a. advertisement, in·afype print that contrasts CJ~ut~:~" whirch it · ord.inary c.oMmner"f:O n<>tice, and· comprehendJt

b. medium,. an axfcJ:io .. discl9sure shall deH.vered in a volume and cacten<:e st:ttti~::ae:ru>t~::tr au ordinary co:nwmer:to h~ar and comprehend video disclosure shall be of a size and,sh~t:de and i!ppear on the screen for a: durtti~n and· in a location sufficient for ·an ordinary· eonsumer tp :read ~nd compr~eru1::1t;

e. ~·a te'levistcrn or video advertisement. an a'Udio di;s¢1nsnre shall be delivered in a v<:Nlume :and cadence sufficient for an q~dihary CQnsntiler·to hear and comprehend it. A

disclosure shall be an:d sh~ttde, .and on the sctee11 for a duratit.m,. aud Ol!Olni!Jt:Y e'Onsumer to :read and· co.mptehend it.

d. In ·I ·radio ad'\?'erli;sementJ the disclosur~:;llhaU b~ delivered m ~ade~ smiit1ient .iw· ordinary consume ttlbefix ~d.comprchend

advertisements, the disclosure shall be in ooderstandahle Nol:lling contrary tol meonsistent with, or in ofthc disc

in any advertisement o.r·prQmoti.tm,·

"Consumer credit" shall mean cr~dlb ofii~:~rer~ or extended to a consumer ptimarily for personal. family, or househol<l·purpoS"es.

4; HMateriaF' shall mean Hkelyto affect a person's d1oice of~ or conduct regarding, ~oods or se:rvices,

a, tny,self.;pr{.}p()Ued vehicle des1gned on a street;thighway, or road;

. v. :({a.rtteyMot()rs~ In.c. StipularedOr.der Exl1ibh A:"


e. other vehicles that are titled and sold through }l,er1l!;rs.

I.

IT IS ORDERED that Respondent, directly or through ~y;cQ:JipO:t:lltiop, $'ubsi~;;af!f1 divisiony or other device. in con.nectio.n with any adverti}lefJ;lent to p,:t:omote1 direq;~Jyori iudi:nicU;y; the purchase, financingj or leasing of automobiles., jn or.aft~ctipg. cQ~er¢e, :Shall P:m~ in ~ny · manner, expressly or by implication; ·

A. Misrepresent that when a Consumer trades in~a t;f~ed l'At\!tQ;t:vf{lU.ole e•tta,de .. ilj. y¢hic1e~*) otder to purchase anotliermo:torvehi£le (~':rrlli'Wl~ ptiti'it\Mjd v~hic1e)1 .Re$pondentW.W p.ay any remaining toan balance on tbe. tr~le.,inv~\ii'cle $u'oh1tbat the consumer will ':ti*"V¢''n0 remaining obljgation fot<arty·amauntcdf.that lban;.or

n. Misrept~sent :anY·rnaterial fact regarding the cost and terms of financing or leasing any newly tpur¢hased vehicle. · ·· · ,

.. .lf: !~$ Ftilt1::~:\t~~~RD~~j) :'t4at ~~spo:ndent, directly or through any corporation, s:ubsidi~ty7 divisi<n:t,, or other deVi;ce~ in co.imection with an advertisement to promote, directly or indirectly, any exten:sion of consumer credit, in or affecting· coml:netce,;'shaU uoli11 any manner, expressly or by implication: ·

A, State t4e amount or .Pt?r~ent€11e of atty dl,)wn payxnept, the number of paymetl,t~ or p.etiod qf tepil!Ytnentt the::f.l1Ui1lU:Ut of;a6;.Jt:·pa~entf ot me amm,mt of any finance charge, wlthouJ }lisclosin;~:f::l9at~y:ru;x:~ c9;Us)ii8'\FO:tt5ly~ll ()fthe following .terms: ·

Th~·ftm<7~t ¢;~: p~tamta~~oftn~~ dowu;pay:tnent;

. The·ten,ns of repayment; a:rr~

.3. Jf;he am'f~:tal p~!!Centaie;1:ate1 '\J.$ingthe term "annual percentage rate"orthe abbre~ia~i'<'>ti ~'AP~}~ Jl' the at):l11Jfl;1 percentage rate may be increased after C'O'tl$1JID¢latioh. of~eb.e Ctedtt tr::an~action1 that fact must also be disclOS€;4; Qt

B. . State a rate' li>fflnance charge. witMtJ;t st~ti.!!lg fu~.r~te:a~ !:lJl 1'amnua1 per¢entags;J tat¢' Qt the abbreviation "APR/' usingthat term, ·

3

fTC,v. Rarn.ev Motors:.lnc S~ipulated Order~ Exhibit A -··Page 3 of 5


III.

IT IS FURTHER ORDERED t:bat Respondent and its and shaH, for ( 5) years after the last date of dJssemina.ti'on of any repres:en.tation covered by th1s order1

maintain and upon request make availableto\:he Federal Trade Commission for inspection and copying:

A. Ali advertisements and promotional maten1als containing the representation;

B. materials that were· relied upon in disseminating the representation; and

All reports, studies+ or evidence in their possession or control that contradict, or call into questi.on the repn::sentation7 or the relied upon for tbetepres~ntation,i'tlcluding and oom1mmicatio.11S with consumers or with a~vetnn::i~ntal :or consumer protection or,€:an1lzal:tort!t

IV.

. IT JS/ftUkTHER ORDERED tha;tRespondent and'its successors and assigns shall deliver a copy of this order to all eurrent ~tl:ld'~:fuhu:e principals, officers#· direetors, and managers~ and to all current and future employees, agents, and representatives having responsibilities with respect to the subject :Q:'laft~t",Of this otdet~ and sbaU sect!Te from each such peJ:sm;, .a. signed and da.ted st-etne.!'it acknowledging receipt of the ort;let, 1tes,PQI1dent shall deUy¢r :rJxbl' or:.der to cutrentp~onnel within thirty (30).daystffter tb~ date;of:service of.thi-s order}.and treJ~smwei within thirty (30) days ·~dJ:et the persort sucih positi® or r~~po!1su:m

v.

IT t&.ll'tJRTJlBllORDERED that Respondent and its successors aud:aJ>siglls sha1l notifY th~:e Comnlissaon thirty (30) days prxotto any change £11 th~ corpotaticin(~1 tha:t affcetcompliance oliligatil:)ns under this or4er, in~ll:fdingbut not Iim~te~.to·a dissfJltftion, assign.n::i~t~sale,;rt..1tljger; or oilier action that would. r:esult il.rthe einerge:t}x.:e of a successor c.oi'Porf(tion; the cr~~tion or dissolution of a subs.ldia~~ par<mt, O:.c~ffilia:te tb~t l;}ngaaes in any ~cts or prac;tices subje~Uo thls order; the proposed filmgc~p;f a bankrup~cy;petition; o~ a change in t]l~~eo:Cpbra:te name Or adaress. lliWesf, howevet, tha:t,. With resi}ect to any ptopos~d cbauge. in

c~r,poration about which Respondent learns le~s than thlrty {30) days priQr to ,t;be:date such aptiol:l is to take plac~~ Respondent shall notify the Commis~ion as soo:rnrs is praeticable after obtalni;bg ~ucl:'f .kl:!¢Wledge. otherwise directed of th~ .C¢11ltnission in writing* an no:tieeS.:requl;recl this shall be *

ovemight c<>urler (not Postal Service) to: Associate Bur%Dau of . cm1sm:ner Protection, Fe<ler.ttl 600 Pennsyivania A venue, NW, Was.hlng~on;

The subject FTC v . .Ramey Motors,

4

v. Ramey Motcn·s, lnc. - Exhibit A-Page 4


Vl.

IT IS l?UIJTHER ORDERED that Respondent and its. succ~sso:cs and assigns, within nlnety (90}. dtiys.!fftcr the date of service of this order, shall me with the Gomruissi<;J:r,r a true and accttrate :report1 in writing, settin.g .. iorth in detail t:he manner ~n~ fottn ottheir own compliance wi~h this otder, Within thirty (30) days of receipt of.wdttennotice from a rt1nres.entative of the Ccnnmission~ they shan submit additional true and a~curatewtlttenreports.

vn. This order will terminate Pn April19, 203~, ~r twenty (20)y!:%If:~ from the most rec:.ent

date thattbt%; Uhited States or tb.e Federal Trade Commission files· a complailit (wit1t.or Without an accpmpanyillg consent decree) in federal courtall:e.gin.g anyviolatiorv.oftbe t1tdcr,:wttichever· corneslate:~G·J?to;vided, however1 that the filing of such a complaint will not affe~t th~·dlJ!ration .of:

c.

Arty Part in this order that terminates in less tha,tt tw~nty t:?O) ~ears; ' ·, < ,.,,,

Tft's otder's application to any Respondent that Is J'l{}t named ~sa defenUant in . .sucli complaint;

This ;Q,rdet'if s11¢h :complaint is fjl~d;. aft~?:r th\'0 order has terminated pursuant to this Part. ··

. Pxl:)¥~d. furt.her, that if such. complaint is dismissed or a· fed¢ral court nil~$ f4~N~.espondent~d not violate any,pto\i'lSion of the order, and th!il \f;ismJssal or ruling is either not appealed or upheld on appeal, then the otderWil1 termirtat~ aqcotd~ngt(l) thls:Part as though the complaint had never beef} filed, except tlwt·the order will;rt0t,tenninate.b~~e~l1 the date s1}eh complaint is filet! and th~ late.t:: 0:( tlre.deadline for appealing such dismissal0r tulin,g a:nt!Ah~d.ate:such· dismissal or ~rling i~ tfpheld ·ofl appeaL ·

By the Commis±Siqn, Commissi('jnC)rOhlh~Usen not participating:

.Dh;nal;d s; Cla.t#: S'e~.re!ar1 ··

SEAL ISSUED: Apri119, 20)2

5

. . . FTC v. Ran:rey Motors1 Inc. S.tlpt~lat~<lC!rdet .. Exbtbit A~Page 5 of 5

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